A trading war to go two – maybe more. US President Donald Trump has returned his tariff against Canada after having reached the economy from the markets to factories and the limits.
But that was the fight this week.
Next week there will be another one in which its steel and aluminum tariffs are effective. Then another three weeks later when Trump threatens other tariffs in a variety of countries.
Private and public comments in the last few days of Trump’s team are mocking the idea that it was the main reason for his tariff policy to stop fentanyl.
The focus is now on the greatest risk of Canada. And it’s bad news when you are one of the Hundreds of thousands by Canadians with a job connected to the car sector. You can be his goal.
In conversation with closed doors, members of the Trump team have urged automotive companies in the past few days to drastically reset their long-term footprints in Canada and Mexico for permanent tariff relief-three of the sources associated with the industry, which were not mentioned on the condition.
US President Donald Trump said on Thursday that he was making his tariffs for some goods from Canada and Mexico, which falls under the Canada-USico-Agreement until April 2.
Team Trump went public almost so far.
His press spokeswoman Karoline Leavitt asked for her message to car companies that feared in front of tariffs that were due in April: “Shift production here.”
Minister of Commerce Howard Lutnick in Fox News made the same point:
“Why are our jobs in Michigan (car) in Canada?” he asked. “(Trump) will say: ‘Come back. Come back.'”
Trump himself described talks that he had conducted with the Big Three US car manufacturers this week, and said that he had promised a short postponement from the previous and so-called fentanyl tariffs that they could allow.
But he warned that there would be no liberation from future tariffs.
“I told them:” That was it. This was a short -term deal, “said Trump on Thursday, when he signed an order in the Oval Office and retired from his first Salvo tariff.
“I said … ‘Don’t come back to me after April 2,” said Trump about the car manufacturers. “‘I don’t want to hear from you after April 2.'”
Most vehicles made in Canada are exported to the USA, and Canada sells more vehicles than it buys. But the industry is not a one -way street: Canada is the largest buyer of cars produced in the USA, and parts cross the border.
What’s next
Trump now threatens tariffs in two phases.
First, next week, a levy of 25 percent will come to steel and aluminum, and the automotive industry will meet the small print for exceptions, since these metals are its main components. Without exceptional regulations, vehicles with punitive price increases would be exposed.
Then he plans tariffs in countries all over the world to punish alleged unfair trade practices – starting on April 2. This is based on reports that he has instructed to prepare his team that is due on April 1st.
Trump made it clear on Thursday that he sees Canada as the main goals. He is preparing for a blue new negotiation of the Canada-US-American Agreement. According to the law, this has to be done in the next decade, but is now expected with an accelerated schedule.
Trump has complained about everything, from Canada’s protected milk sector to banking regulations to GST. Molkerei often came at a time and in a time Profanity stopped with Prime Minister Justin Trudeau this week.
Will Trump reduce again?
He swears that he was not frightened this week when the river sprayed from Red over trade screens and corresponds to losses on the stock exchange.
“I’m not even looking at the market,” Trump insisted.
Prime Minister Justin Trudeau, who spoke in Ottawa on Thursday at a childcare announcement, was asked to describe his latest call with US President Donald Trump about tariffs. Trudeau, who did not affect special features, emphasized that conversations have not yet been completed and repeated that Canada focuses on how they can help people, while the taxes are present.
What chaos looks like
However, the market examined the economy. And it gets untidy out there. Customs brokers had a unique viewpoint for the real effect.
Jesse Mitchell, the director for business development at Strader-Ferris International, who works with hundreds of cross-border companies in Ottawa, said that companies combined with unexpected invoices $ 50,000, $ 75,000 and $ 100,000; Some because their shipments later reached the border than expected after midnight on Tuesday when the tariffs occurred.
In other cases, they were not aware that they would owe a tariff. For example, Mitchell quoted a Canadian company that repairs heavy machines.
He said that the company would import the engine, invoice 50,000 US dollars for repairs and send it back to the USA – and only found that they had to pay for another 25 percent of this invoice to send it back across the border.
Canadian companies had no choice. Many paid the tariff, he says, to avoid losing their US customers.
In view of this, according to Mitchell, companies held back the programs on both sides – and hoped that Trump would quickly return.
He has a certain extent. Trump has dropped tariffs for goods that are classified with the Canada USA-Mexico Agreement that does not cover any controversial areas such as wood, dairy products and certain other products. The details are not clear there either.
“It causes a headache for everyone – certainly in Canada, but probably also in the United States,” said Mitchell.
As a company approached chaos, they hurried before Tuesday.
The exports to the USA rose from November to January, a trend of the Bank of Montreal, which was connected to the tariffs on Thursday, and the smashed loonic.
The Canadian Chamber of Commerce said that the postponement on Thursday would alleviate some damage. But not almost everything.
“This is not a moment to celebrate. The economy is not a toy that can be used to play,” said Matthew Holmes, the Vice President of the Chamber.
“Constant threats and economic uncertainties have requested their toll.
For Canada, this livelihood exist in numerous sectors. Canada’s tens of thousands of steel workers may feel it next week, not to mention the much larger car sector.
The economy may not be a game. But the workers will be forced to play it – round, after round after round.
